Macau Casinos to Receive Boost from Chinese President Tour
President Xi Jinping of China is set to visit Macau in December and financial companies are hoping that the trip will bring a boost for the future of the casinos. However, in the short term many are feeling the pinch as listing restrictions have been implemented in preparation for the presidential arrival.
President Xi is expected to visit Macau between 18th and 20th December, with visitor controls which were not expected to take place so soon. This has had a negative effect on some of the seasonal visitors from the mainland but casinos hope that the shortfall in their revenue will be worth it because of the potential longer term benefits the presidential visit could bring.
Curtail on visitor visas
The imminent arrival of President Xi has meant that visitors from the mainland have not been able to visit Macau so easily. The traffic controls have been implemented far earlier than anyone anticipated and this has left a significant dent in Macau casino revenue.
Credit Suisse AG have been tracking the performance of the Macau casinos and believes that with VIP visitors particularly affected by visa restrictions, GGR could tumble by as much as 15-20%.
The restrictions are expected to remain until 20th December and target repeat visitors to Macau, the very same visitors which are the most likely to be spending money in casinos. Analysts says that year on year November revenue showed a sharp decline with the same expected for December.
Not all bad news
Although the Chinese tour makes it tough for Macau casinos in the short term, there are hopes that during his visit President Xi may announce some good news.
Macau is expected to be announced as the location for a new financial hub for China with plans for a stock exchange and other facilities. Although these don’t relate specifically to gambling it will boost the overall economy of Macau and experts believe there will be a strongly positive effect on the casinos as a result. With more tourism and business flooding into the area, the potential for increased revenue for the gambling industry is very significant.
Of course, it will take a while for these plans to come to fruition but in the shorter term, Macau should still benefit from the positive sentiment the announcement will bring. With renewed interest in the area, casinos should start to see an upswing in revenue and register a corresponding boost in their GGR in the near future.
